Exam Review for FINC 3331, Exam I February 9th, 2005 The exam will be held on Wednesday, February 16th at the regular class time. You will have the entire period to take the test (if you need it) and you will be allowed one 8.5" x 11" note sheet, with notes on both sides. This sheet will be turned in with your test, and you will never see it again -- if you want to use the same sheet on the final, please make a photocopy BEFORE this exam . You can also use your calculator manual on this test. Be sure to bring a #2 pencil and a calculator. Chapter 1 • Explain where career opportunities are found within the three interrelated areas of finance. • Identify some of the forces that will affect financial management in the future. • Describe the advantages and disadvantages of alternative forms of business organization. • State the primary goal of financial managers in a publicly traded firm, why this should be the goal, and explain where social responsibility and business ethics fit in. • Discuss the business investment process. • Define an agency relationship, give some examples of potential agency problems, and identify any possible solutions. • Identify major factors that determine the price of a company’s stock, including those that managers have control over and those that they do not have control over.

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